In the crypto community, excitement is brewing over Solana’s (SOL) price action, particularly as it appears to be breaking out from a significant Cup and Handle pattern. Crypto Analyst, The Moon, highlights that this technical formation often indicates a bullish continuation, raising the prospect of substantial upside if a breakout occurs.
The chart reveals the Cup and Handle formation, where the “Cup” represents a rounded bottom that began around 2022. This phase features a gradual decline followed by a recovery, peaking at a resistance level near $202.74, with an important intermediate resistance at approximately $169.
Currently, SOL is trading around $166, and a breakout above the $169 resistance today could signal a major price surge.
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#Solana could go parabolic starting today! #Sol is breaking out of this MASSIVE Cup&Handle pattern with the potential target of $370 pic.twitter.com/qp31pbtJvS
— The Moon (@TheMoonCarl) October 21, 2024
The “Handle” portion of the pattern is characterized by a consolidation phase after the cup completes, taking the shape of a descending wedge. This consolidation suggests a period of indecision, but it also serves as a potential precursor to a breakout.
Key resistance levels are critical in this scenario. The aforementioned $169 and the peak at $202.74 have been significant hurdles for SOL in the past. Analysts note that if SOL can successfully breach the $169 level, it could lead to a rapid increase in price, possibly reaching $202.74 and beyond if that level is also surpassed.
The bullish sentiment is reinforced by the descending wedge observed in the handle, which is considered a positive indicator. The projected path drawn on the chart hints at a substantial move, with a target of around $370.
This figure suggests a potential increase of over 100% from the critical resistance level, should SOL manage to break and sustain its position above this zone.
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In summary, the current analysis points to a strong possibility that Solana’s price could experience a parabolic rise, with the Cup and Handle breakout acting as a key catalyst.
The projection of reaching $370 aligns with the expected behavior of this pattern, where the measured move is determined by the depth of the cup added to the breakout point.
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The post This Solana Chart Suggests SOL Price Could ‘Go Parabolic’ Starting Today appeared first on CaptainAltcoin.
